Bitcoin crash. Photo: Big Stock
While the crypto sector has yet to recover from the crisis caused by the FTX, which has sunk the market capitalization to the lowest levels since 2020, along with the price of Bitcoin (BTC), which is showing the strongest sell signal since 2021.
Specifically, when looking at Bitcoin price movements over the past 3 days, TradingShot experts noticed that the Convergent and Divergent Moving Average (MACD) of the asset forms a bearish crosssignaling a low from last week, as explained on Nov. 18:
“Since March 2021, we’ve had this formation four more times, all of them at a new low. On September 16, 2021, the cross was capped at ‘only’ a -18% drop, but the other three saw huge drops of -50%, -52%, and -57%.”
They concluded that “a ‘standard’ -50% drop on today’s candle would push the price just below $10,000.”
Increase possibilities?
That said, TradingShot noticed a different parameter from past events: this time, the development of the cross is a bearish channel, compared to the bullish channel on previous occasions.
Analysts weren’t sure if this would have any effect on the possible outcome, but they highlighted that there is a chance that this could lead to an end of the bearish pattern.
Bitcoin technical analysis
At the time of writing, Bitcoin is trading at $16,649, down -5.5% over the past 7 days, demonstrating a choppy weekly pattern.
Cumulatively, the first decentralized financial asset (DeFi) lost 12.64% during the last 30 days. With a market capitalization of $322.12 billion, Bitcoin remains the largest digital currency by this metric.
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